MARKET ACTIVITY/TRADING NOTES FOR DAY ENDING WEDNESDAY, MARCH 25, 1998 (1)
Thursday, March 26, 1998
Bay Street racked up its third-straight record, but the advance stalled after Bank of Canada governor Gordon Thiessen issued an inflation warning. Wall Street slipped on fears that profits could fall short
Canadian stocks hit their third record in as many days, as investors anticipated a wave of mergers and acquisitions in the telephone industry.
ÿ
The merger speculation comes after Telus Corp., Canada's third-largest phone company, said this week it is in talks about a "business combination" with AT&T Canada, a Canadian long-distance company partly owned by AT&T Corp.
"The big upward action was all the telephone company-related moves," said John Zechner, president of J. Zechner & Associates Inc. "The group is on fire."
ÿ
The Toronto Stock Exchange 300 composite index rose 27.99 points, or 0.4%, to 7579.22, after soaring to an earlier intraday record of 7609.70.
ÿ
The index retreated in the afternoon after Bank of Canada governor Gordon Thiessen raised concern interest rates may rise before the yearend to contain inflation.
ÿ
About 124.6 million shares changed hands on the TSE, up from 110.2 million shares traded Tuesday.
ÿ
Telus shares (T/TSE) rose $2.90 to $43.30 and BCE Inc. (BCE/TSE), the most heavily weighted stock in the TSE 300, rose $2.15 to $59.40. Teleglobe Inc. (TGO/TSE) rose $2.05 to $64 and BC Telecom Inc. (BCT/TSE) jumped $3 to a record $55.
ÿ
Bank stocks gave up earlier gains after Thiessen's comments.
ÿ
Royal Bank of Canada (RY/TSE) fell 30› to $85.65, after rising as high as $86.80 before Thiessen's comments. Bank of Nova Scotia (BNS/TSE) ended 10› higher at $37.60, after rising to $38.15 intraday and Bank of Montreal (BMO/TSE) fell 25› to $78.30 after earlier rising as high as $79.40.
ÿ
Technology stocks like Northern Telecom Ltd. and Newbridge Networks Corp. gave back their early gains when U.S. stocks fell late in the session.
ÿ
"Those big-cap stocks that went down with the U.S. market," Zechner said. "Once you get U.S. selling, those stocks get hit."
ÿ
Nortel shares (NTL/TSE) fell 75› to $89.95 after touching an intraday record of $92.45, and Newbridge (NNC/TSE) dropped $1.40 to $39.25 after earlier rising as high as $41.60.
ÿ
Oil and gas stocks rose, along with the price of crude.
ÿ
Talisman Energy Inc. (TLM/TSE) gained 45› to $45.40 and Renaissance Energy Ltd. (RES/TSE) advanced 25› to $30.10.
ÿ
Gold shares slumped with the price of bullion. Barrick Gold Corp. (ABX/TSE) fell 75› to $27.90 and Placer Dome Inc. (PDG/TSE) dropped 30› to $17.60 as the price of bullion on the Comex division of the New York Mercantile Exchange fell US40› to US$299.10 an ounce.
ÿ
Other Canadian markets were mixed.
ÿ
The Montreal Exchange portfolio rose 13.9 points, or 0.4%, to 3854.85.
The Vancouver Stock Exchange fell 1.26 points, or 0.2%, to 614.86.
For a scorecard of trading activity on all Canadian Stock Exchanges, go to:
quote.yahoo.com .
REFERENCE: Canadian Market Summary
canoe2.canoe.ca
U.S. stocks fell on concern over higher interest rates and slowing profits.
The Dow Jones industrial average lost 31.64 points, or 0.4%, to 8872.8.
ÿ
The Standard & Poor's 500 index fell 3.73, or 0.3%, to 1101.92. The Nasdaq composite index rose 12.07 points, or 0.7%, to a record 1824.51.
ÿ
About 669.2 million shares changed hands on the Big Board, up from 611.5 million shares traded on Tuesday.
ÿ
Drugmakers and banks declined on concern that their earnings will fall short of expectations. Computer and software shares gained after Microsoft Corp. said profit for this quarter will top forecasts.
ÿ
J.P. Morgan & Co. (JPM/NYSE) led the Dow's decline, falling US$2 1/16 to US$134 13/16.
Some drugmakers fell after Salomon Smith Barney analyst Christina Heuer downgraded Eli Lilly & Co. to "outperform" from "buy." Lilly shares (LLY/NYSE) fell US$1 1/2 to US$61.
ÿ
Microsoft (msft/nasdaq) rose US$3 7/8 to US$88 13/16 after the company said robust sales of business software are boosting revenue.
ÿ
Other high-tech companies gained on the news, including Intel Corp. (INTC/Nasdaq), which jumped US$1 5/8 to US$76 1/16 and Dell Computer Corp. (DELL/Nasdaq), which advanced US$2 3/16 to US$67 15/16.
ÿ
Overseas markets were mixed.
ÿ
London: The FT-SE 100 index fell 15.9 points, or 0.3%, to 5967.8.
ÿ
Frankfurt: German shares closed at a record level. The Dax index climbed 68.38 points, or 1.4%, to 5096.62.
ÿ
Tokyo: The 225-share Nikkei average climbed up 51.95 points, or 0.3%, to 16,658.34
ÿ
Hong Kong: The Hang Seng index rose 165.2 points, or 1.4%, to 11,810.63.
ÿ
Sydney: Australian stocks backed away from record territory. The all ordinaries lost 10.4 points, or 0.4%, to 2781.6.
**************************************************************************************
************************************************************************************** |
